It has not been this sharp since November 2016, but even then the dollar only gained 11 yen. Now, for the period from March 9 to April 27, the yen has decreased in value against the dollar by 15 units, and this is definitely not the limit. Firstly, the rise in the FRS rate has a positive impact on the dollar rate, and given the current soft policy of the Central Bank of Japan, the growth of the American currency will continue further. Secondly, technically, a flag is clearly formed on the chart, and if the figure is completed, then by the end of June the yen will try to consolidate sideways at 125-130 units per dollar, and after that it will rewrite the lows, first from 2002, and then from 1998, by 135 and 145 to the dollar, respectively.

A new earthquake struck Fukushima. The tsunami in 2011 wrecked the reactor on this island, and the possibility of another natural disaster remains very high, thus the value of the yen will be determined solely by this event in the next days and maybe weeks.

Given that the yen has been actively declining against the dollar since September 2021, and is currently approaching February 2016 lows, a further drop to the 125 yen per dollar range at the present exchange rate of 118 yen is highly likely. Given the Fed's tightening policies, this appears to be the first big hurdle on the route to 135 yen, which is the lowest level since 2002.